In this paper, we examine the optimal mechanism design of selling an indivisible object to one regular buyer and one publicly known buyer, where inter-buyer resale cannot be prohibited. The resale market is modeled as a stochastic ultimatum bargaining game between the two buyers. We fully...

In this paper, we investigate how information revelation rules affect the existence and the efficiency of equilibria in two-round elimination contests. We establish that there exists no symmetric separating equilibrium under the full revelation rule and find that the non-existence result is very...

This paper analyzes a sorting model of labor contracts when workers have private information about their own productivities, and firms can test (monitor) workers. We show that sorting considerations alone generate steep wage-tenure profiles, high turnover rates of newly hired workers, and...